12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

A Primer on Estate & Inheritance Taxes in Zip Code 32083

A Primer on Estate & Inheritance Taxes in Zip Code 32083


Me and my dad are the biggest promoters of an estate tax in the US. It's not a popular position.
 
- Bill Gates


When you die, you leave your home, your possessions, your money, and other things of monetary value to spouses, children, family members, friends, charity or religious institutions. The government wants its share. Some argue that estate taxes can provide for future generations. Others argue that is robs inter-generational businesses of the capital they need to keep growing.

Your estate may be subject to inheritance tax, estate tax, state and federal tax statutes, and a host of exemptions that can pass more of the estate to inheritors of your choosing.

What are the differences between Estate Taxes and Inheritance Taxes?

Let's start with estate tax. Your estate is the total of your possessions and debts left behind when you die. An executor, either named in the will or appointed by law, will pay off outstanding debts, cover funeral expenses, and administrative costs (e.g. executor's fees). If necessary, executors may liquidate property to pay taxes, debts, or fees. After federal and state estate taxes are paid, the remainder goes to the heirs. So, the estate tax is a tax on the total amount of the estate, after creditors are paid but before any heirs get their bequest. The tax is paid by the estate itself.

Inheritance tax occurs after the heirs receive their payouts. It is a tax on the amount received and is paid by the heir. Inheritance taxes are levied by the states. This means that in many cases an estate is taxed twice -- first by the federal estate tax, then by the state inheritance tax.

The estate includes cash on hand, bank accounts, financial assets (stocks, bond, mutual funds, etc.), real estate, automobiles, boats, art pieces or rare collections, personal property, debts owed to the estate, business interests, etc. An estate is made up of all of these things. An appraiser will determine the fair market value of everything to determine the taxable value of the estate.

Inheritance Tax Exemptions

For large estates, sophisticated estate planners will work with the family and utilize trusts, charitable donations, non-taxable gifts and other techniques to meet the family's needs and minimize the tax burden.

For small estates, there are exemptions are applied to the taxable amount before estate taxes are collected. Exemptions can be relation based and amount-based.


There is an exemption when the estate is passed from a deceased person to their US citizen spouse. It will not be subject to any federal estate tax. States that levy an estate tax generally follow the federal government's rules for this, as well. If the estate is passed to children, siblings or golfing buddies, the exemption doesn't apply.

Amount-based exemptions are $5.34 million for an individual, $10.68 million for a couple as of 2014. It is indexed for inflation, so it will probably grow over time.

State inheritance taxes vary a great deal and can make things much more complicated. There might be exemptions for some family members, or different tax rates depending on whether you are a spouse, a child or just a friend. Many states tie their inheritance tax directly to the federal estate tax and exemption rate. Some have much lower thresholds than the federal threshold.

There are a few other miscellaneous deductions, such as a mortgage, usually deducted from the estate's value before taxation. Family businesses and farms may be taxed at a lower rate. Inheritance taxes tend to be set up on a progressive scale, meaning as the value of the estate increases, the tax rate rises and the taxes increase exponentially.

 
Personalize & Print a Free FL Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free FL Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 32083
Maria G Pitelis PA
1380 Alt 19
Palm Harbor, FL 34683
(866) 524-9941
Family Law Attorneys, Attorneys, Divorce Attorneys, Estate Planning Attorneys
Billiris Tom
2311 Alt 19 # 4
Palm Harbor, FL 34683
(727) 943-9466
Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
Daniel J Rose PA
323 NE 6th Ave
Delray Beach, FL 33483
(561) 266-9057
Probate Law Attorneys, Real Estate Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys
Tavares Gerald
3060 Alt 19
Palm Harbor, FL 34683
(727) 781-9000
Attorneys, Legal Service Plans
Genet Paul B
775 County Road 1
Palm Harbor, FL 34683
(727) 538-8865
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Bill Beck Law
3202 Alt 19 Suite B
Palm Harbor, FL 34683
(727) 942-8855
Family Law Attorneys,  Attorneys,  Child Custody Attorneys,  Divorce Attorneys
Garcia Rivera Luis
2706 Alt 19 # 223
Palm Harbor, FL 34683
(727) 772-8818
Elder Law Attorneys, Attorneys
Saberson Roger G
70 SE 4th Ave
Delray Beach, FL 33483
(561) 272-8616
Attorneys, Wills, Trusts & Estate Planning Attorneys, Real Estate Attorneys, Corporation & Partnersh
Kupfer Richard A
833 Eastview Ave
Delray Beach, FL 33483
(561) 684-8600
Farnsworth Shane M
70 SE 4th Ave
Delray Beach, FL 33483
(561) 272-8337
Civil Litigation & Trial Law Attorneys,  Attorneys,  Landlord & Tenant Attorneys,  General Practice
Haasch Fran
1275 Nebraska Ave
Palm Harbor, FL 34683
(727) 784-8191
Attorneys Referral & Information Service, Attorneys
Total Attorneys - Divorce
PO Box 273963
Delray Beach, FL 33483
(561) 526-8169
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
Early Jeremy
5824 Pebble Ridge Dr
Milton, FL 32583
(850) 983-8080
Criminal Law Attorneys, Attorneys, General Practice Attorneys
Granoff & Kessler
8501 SW 124th Ave
Miami, FL 33183
(786) 352-8004
Attorneys, Family Law Attorneys
Angelis Angie
6528 Kendale Lakes Dr # 1202
Miami, FL 33183
(305) 382-7888
Real Estate Attorneys, Attorneys
The Lewis Law Group PA
1115 SE Ocean Ln
Port Saint Lucie, FL 34983
(772) 286-7861
Labor & Employment Law Attorneys, Criminal Law Attorneys, Attorneys
Florida Health Care Law Firm
909 SE 5th Ave
Delray Beach, FL 33483
(561) 455-7700
Medical Law Attorneys, Attorneys
Krall, Mark L
190 SE 5th Ave
Delray Beach, FL 33483
(561) 276-7424
Wills, Trusts & Estate Planning Attorneys, Attorneys, Real Estate Attorneys, Estate Planning Attorne
Listick Michael M
190 SE 5th Ave
Delray Beach, FL 33483
(561) 276-7424
Real Estate Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys
Listick & Krall PA
190 SE 5th Ave
Delray Beach, FL 33483
(561) 276-7424
Attorneys, Wills, Trusts & Estate Planning Attorneys, Real Estate Attorneys, Estate Planning Attorne
W C 848 Holding
8501 SW 124th Ave
Miami, FL 33183
(305) 456-7174
Real Estate Attorneys, Attorneys
Sumrall, H Cassedy Jr
355 NE 5th Ave
Delray Beach, FL 33483
(561) 272-7040
Attorneys,  Elder Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Attorneys
Scarlett Charles E
160 SE 6th Ave # B
Delray Beach, FL 33483
(561) 278-6707
Attorneys,  Legal Service Plans,  Banking & Mortgage Law Attorneys,  Attorneys Referral & Informatio
Armstrong, Angela M PA
1018 Nebraska Ave
Palm Harbor, FL 34683
(727) 785-6200
Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US